Major Carriers Increase Rates

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Rate increases for United Parcel Service Inc. and FedEx Corp. will take effect today.


Rates for UPS Ground, UPS Next Day Air, UPS 2nd Day Air, UPS 3 Day Select and international services will rise 2.9 percent. UPS Hundredweight Service, an alternative to services offered by less-than-truckload carriers, will rise 5.9 percent.


However, there will be no changes to most UPS retail rates offered at 3,600 UPS Store locations.


Also starting today, UPS, Atlanta, will reduce the fuel surcharge applied to UPS Next Day Air, UPS 2nd Day Air and UPS 3 Day Select as well as international services. A maximum cap of 9.5 percent will be used. The surcharge will continue to be calculated from an index based on the average price for a gallon of kerosene-type jet fuel.


A fuel surcharge of 2 percent on UPS Ground, UPS Ground Hundredweight and UPS Standard To Canada will be applied.


Other pricing changes that take effect Jan. 3 include:


· The delivery area surcharge on residential and commercial services to more remote ZIP codes will increase by 25 cents.


· The residential surcharge will increase 10 cents for UPS Ground services and 35 cents for UPS Next Day Air, UPS 2nd Day Air and UPS 3 Day Select.


· The charge for additional, optional declared value protection will be 40 cents per $100, up to $50,000 per package, with a minimum charge of $1.20 for packages valued between $100.01 and $300.


· The company will extend UPS Ground service rates as an option for shipments bound for Alaska, Hawaii and Puerto Rico that originate in the continental United States.


FedEx, Memphis, will also increase its shipping rates today.


The cost of its FedEx Express service will rise 2.6 percent. This includes a 4.6 percent increase in package and freight costs and a 2 percent decrease in its fuel surcharge.


Currently, a 0.5 percent fuel surcharge is triggered when the price of a gallon of kerosene-type jet fuel hits 52 cents, and rises 0.5 percentage points each time that price increases 4 cents above 54 cents. The company will raise the trigger price for the surcharge to 66 cents.


Standard list rates for FedEx Ground and FedEx Home Delivery will increase an average of 2.9 percent. Also, FedEx Ground will introduce an indexed fuel surcharge for U.S. and international FedEx Ground shipments.


Other changes effective today include:


· Delivery area surcharges assessed for FedEx Express shipments destined for locations in select ZIP codes will increase 25 cents per package. The new delivery area surcharge for residential locations will be $2 per package. For commercial locations it will be $1.25 per package.


· Delivery area surcharges assessed for FedEx Ground shipments destined for locations in select ZIP codes also will rise 25 cents per package. The new surcharge for residential locations will be $2 per package. For commercial locations it will be $1.25 per package.


· The surcharge for residential delivery will increase from $1.40 to $1.50 per package for FedEx Home Delivery shipments.


· For FedEx Ground shipments, the charge for declared value exceeding $100 will increase from 35 cents to 40 cents per $100, and the maximum declared value for a ground package will rise from $25,000 to $50,000 per package. A minimum charge of $1.20 will be implemented for packages with a declared value of $100 to $300. Rates for shipments to Puerto Rico are also increasing.


An indexed fuel surcharge was expected to be implemented yesterday for DHL's DHL Ground and DHL@Home shipments.


The fuel surcharge will be initially set at 2 percent.


Other new delivery rates and fee adjustments will take effect at DHL, Plantation, FL, this month, including:


· Rates for DHL Domestic Air Express and International Express will increase an average of 3.4 percent.


· DHL Ground Service rates will increase an average of 2.9 percent.


· Rates for DHL@Home, the company's expedited business-to-residence shipping service, will increase an average of 3.7 percent.


· Also going into effect will be a 25-cent increase in the surcharge for residential delivery and delivery area service.


· There will be no changes to applied shipment value protection rates, but shipment value protection for Domestic Ground will now carry a minimum charge of $1.20. Packages without shipment value protection will continue to be automatically provided coverage of up to $100 against potential loss or damage without charge.


· DHL will reduce its indexed fuel surcharge for Domestic Air Express and International Express by 0.5 percent, resulting in a price adjustment of 2.9 percent for 2005 Express services. This adjustment will go into effect Jan. 30.


Melissa Campanelli covers postal issues for DM News.com. To keep up with the latest postal news subscribe to our free e-mail newsletter DM News Daily by visiting www.dmnews.com/newsletters


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